The Brazilian Institute for Responsible Gaming (IBJR), which represents major betting companies in Brazil and globally, has rejected criticism from the banking sector regarding concerns over household debt allegedly linked to sports betting operators.
The institute did not step back when labeling the banking sector's position as contradictory and hypocritical, given its historical role in consumer over-indebtedness in the country.
According to data from the Consumer Debt and Default Survey conducted by the National Confederation of Commerce, nearly 80% of Brazilian families are in debt.
The IBJR emphasized that the main source of this debt is not betting but credit cards, a payment system not accepted by regulated betting companies in Brazil. Credit cards are massively offered by banks with interest rates that reached 451.5% per year in August.
During discussions on the alternative Provisional Measure to the IOF tax increase, banks reportedly admitted its sole concern was the impact of taxation on rural and real estate credit letters, banking products. The institute then argued the banking sector is attempting to deflect attention from its own structural privileges and undeniable responsibility in the country's debt scenario.
Since the regulation of the sports betting market, the IBJR has advocated for a properly supervised environment with clear rules and operators committed to legal compliance to ensure a transparent, responsible ecosystem free from illicit connections.
The institute reinforced its commitment to constructive dialogue for developing a regulated, safe and responsible market that contributes to economic growth and Brazilian consumer protection.
The IBJR has proposed three alternative measures to increase taxes for the regulated gambling market, instead of a GGR tax hike
